The Vermont Teddy Bear Co., Inc.: Challenges Facing a New CEO
I. CASE ABSTRACT
John Sortino founded the Vermont Teddy Bear Company (VTBC) in 1981 by selling handsewn teddy bears out of a pushcart in the streets of Burlington, Vermont (Wheelen & Hunger, 2004). Mr. Sortino's motivation for making the teddy bears in the United States cultivated while playing with his son, Graham, and after noticing his son had many stuffed animals that were made in other countries (Wheelen & Hunger, 2004). Since its inception, the company's focus has been to design, manufacture, and direct market the best teddy bears made in America; using quality American materials and labor (Wheelen & Hunger, 2004).
Throughout the late 1980's and into …show more content…
A Strategy of aggression growth based on Robert's lead
Movement from an entrepreneurial to company into its future success as being a professionally managed organization
Offshore sourcing of materials and manufacturing in an effort to lower the company's cost of goods sold and to broaden its available sources of supply
Marketing its bears as an attractive gift or collectible for both children and adults.
Market personalized teddy bears delivered directly to recipients as gifts for holidays and special occasions.
Use offshore manufacturing alternatives to move to broader price points
Expand from a regional brand to a national brand to expand into larger markets
Reposition the company
Move offshore to provide this company with an opportunity to become more profitable
Committed to understanding its potential offshore partners
Ensuring that its partners provided decent, lawful working conditions
Required that all offshore vendors sign a written statement prior to any business dealings
Essential to its business are quality, variety, and creativity of the company's products
Commitment to customer service
Use of the best available materials
Guaranteed for life
Repair or replace any damaged or defective bear at any time
II. CORPORATE GOVERNANCE